Proxy servers play two very different roles in business/enterprise environments and home/personal networks.
1.In a commercial network, there are few downsides -- proxies in this setup are used to cache content on the Internet that has previously been accessed by another client, provide isolation from the Internet for internal hosts, thereby improving security, and restrict access to the Internet -- or some content on the Internet -- from a corporate LAN. The downside of this setup, if anything, is that it increases the complexity of getting some services to work through a proxy (if that's what you're forced to do; Usually networks are designed to force only some traffic through a proxy.)
2. For personal use, many people use proxies to provide some form of anonymity on the Internet. There are few advantages here, as delays are added in most cases, and some content can be filtered out (for good or bad). In addition, trust is a major concern: proxy servers are able to record, capture, and track your activities, and if it's hosted by dishonest entities, the information you send through it could be used to cause harm.
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